Is Ad Blocking So Terrifying?

 

Let’s talk about ad blocking. It’s something that’s caused a significant amount of controversy with publishers claiming lost revenue and marketers claiming lost advertising opportunities. All of this is in opposition to the broad consensus among consumers that it’s a correction back in their favour long overdue on the internet.

 

Here at MyMediaTradingDesk, we’re not as concerned as some of our larger or international competitors. We operate in the Australian market, which is relatively small. We’re a boutique agency and we work with a more exclusive brand of client. MMTD serve Privately Owned Media and Marketing Agencies in Australia (and a handful of select Direct Advertisers). These agencies benefit from our ability to evaluate and apply the learnings of the larger agencies and international trade desks as needed, and avoid any problems associated with first-to-market solutions.

MMTD - Ad Blocking Definition
 

We’re all playing in an area of the market where ad blocking is unlikely to have a massive short to medium term impact, but there are other reasons we don’t believe you should be that worried.

 

1.   A significant part of what we do is knowing who the right prospects are for our clients. It stands to reason that, a user who installs ad blocking software was very unlikely to click through and become a prospect for any of our clients. In these cases, ad blocking actually assists us by removing the already unengaged from our media buys.

 

2.   It is true that ad blocking removes impressions that are able to be bought, essentially decreasing the total available inventory. But this decrease will not be significant enough to make a real difference to our clients given the size of our campaigns seems to max out at about 30 million impressions per month per campaign.

 

3.   The MMTD approach to programmatic incorporates a relatively good bid to win ratio for our RTB bids. Because we’re not the lowest bidders any increase in ad unit prices will have only a limited effect on our bid and sell prices. But if we were an information marketer currently buying heavily optimised, extremely cheap traffic, we’d be very concerned about ad blocking!

 

4.   Our digital advertising options include display, mobile, in-app, Facebook, TV sync and Instagram. We’re looking at including EDMs, digital outdoor, programmatic TV and reinvigorating our original video offering as a standalone product. By following the growth areas of in-app media, Facebook, Instagram and YouTube we are able to greatly reduce the impact of the growth of ad blocking. The reason for this inoculation is that ad blocking struggles to relate to in-app ecosystems. According to the latest report from Flurry, 90% of the time consumers spend on mobile is in-app, not in a browser.

 

5.   At MMTD our business model not only protects us from the current negative impact to be had from ad blocking, it serves to protect our clients as well. Even if there was a CPM sell price increase of 20% due to scarcity of availability, MMTD would still remain one of the best value options in the market when taking into account the data, service and reporting standards we also adhere to. We prioritise achieving the goals our clients have identified and every campaign is designed to work efficiently and effectively towards this.

 

Basically, we’re a great team to have on your side so brief us on your requirements to see what kind of benefits our campaigns can obtain for you and your clients. And more importantly, continue to make sure that ad blocking is something you do read up on, but that it does not impact your confidence in campaigns or client outcomes for your AU digital media buying.

 

Are you still terrified?